Cheaper fares on transatlantic flights were promised after BA had the right to form a partnership with American Airlines. The U.S. authorities accept claims from the two airlines, the cost savings will be established to better services and lower ticket prices as a result.
BA has been trying to build a partnership with American Airlines for more than a decade, but thwarted by the worries that it may be frustrated harm consumers. The partnership is a great boost to BA, which is troubled by the labor disputes due to recession and a large deficit in the pension fund.
Besides, the deal is good news for consumers. The alliance will provide the cross-Atlantic travelers with a variety of benefits including a reduction in fares on more routes, more services, better schedules and reduced travel and transfer times.
Meanwhile, there are concerns that a lack of competition on some routes will mean the couple will have to give up four pairs of runway slots each day to the competition.
It is still possible that the EU could step in and block the arrangement on competition grounds.